Tuesday, September 29, 2009

Jiangbo Pharmaceuticals Inc. (JGBO.OB) Posts Strong Q4 and FY09 Results, High Expectancies for 2010

Jiangbo Pharmaceuticals Inc. today announced its fiscal and fourth-quarter results for the period ended June 30, 2009. The China-based pharmaceutical company posted solid results for both periods and gave a summary of achievements for the year, as well as its outlook for 2010.

“We are delighted to report a strong finish to fiscal 2009, with revenues and operating income significantly exceeding our prior guidance for the year. We believe that the factors that contributed to this performance were strong sales from our new products and the successful restructuring of our sales and marketing network. With nearly $63 million in operating cash flow in fiscal year 2009, we ended the fiscal year with over $100 million in cash. We believe that our strong cash position will provide us with significant flexibility to pursue continued organic growth and strategic acquisitions,” Wubo Cao, chairman and CEO of Jiangbo stated in the press release.

Revenues grew 10.1 percent to $31.2 million, up from $28.3 million reported the same quarter the year prior. Net income increased 19.9 percent to $11.5, as compared to $9.6 million for the same quarter last year.

For fiscal year 2009 the company posted a 17.9 percent increase to $117.4 million, as compared to $99.5 million for fiscal 2008. Net income grew 28.6 percent to $28.9 million, as compared to $22.5 million for fiscal 2008.

In July 2008, Jiangbo received approval from China’s State Food and Drug Administration (SFDA) for the production and distribution of Radix Isatidis Dispersable Tablets, an herbal-based traditional Chinese medicine for the treatment of viral influenza.

In January 2009, the company acquired Shandong Hongrui Pharmaceutical Company, including all assets and legal rights to distribute Hongrui’s 22 traditional Chinese medicines. The same month, Jiangbo revamped its sales network to accommodate distribution through 28 large regional distributors.

The company anticipates fiscal 2010 to far surpass fiscal 2008 and 2009, expecting revenues for the year between $96 million and $98 million based on the introduction of new drugs and higher volume of various product sales.

“Fiscal 2010 is expected to be a transitional year for Jiangbo as we upgrade our TCM production facility, prepare for the introduction of new drugs, and pursue additional opportunities for both organic growth and potential strategic acquisitions. Our current outlook reflects only the drugs that we have in hand today and will be subject to update as we execute strategic initiatives to expand our market position and profitability in the future. We remain very confident regarding our future growth prospects and look forward to sharing further details with our shareholders as our expansion plans reach a definitive stage,” Cao stated.

About QualityStocks:

QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.

Sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net

The Quality Stocks Daily Stock Report http://video.qualitystocks.net

The Quality Stocks Daily Blog http://blog.qualitystocks.net

The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net

Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net

No comments: